15 December 2015

Pin It

PAN to be mandatory for cash transactions above Rs 2 lakh

PAN to be mandatory for cash transactions above Rs 2 lakh

Finance Minister Arun Jaitley in his Budget Speech 2015-2016 had proposed making quoting of Permanent Account Number (PAN) mandatory for all sale and purchase of over Rs 1 lakh.

In his speech Jaitley Said following "Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh. The third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions,"

But after that Government received feedback from Industry and now

Finance Minister Arun Jaitley told to media that the threshold will be Rs 2 lakh for cash purchase or sale.

The Revenue Secretary, Hasmukh Adhia told to media following

the Finance Ministry has changed the reporting requirements of PAN, making it mandatory for all transactions of over 2 lakh effective January 1, 2016.

“This will include transactions through cash, cheque and jewellery,”

The official release said “Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity,”

Starting from the New Year, quoting of PAN will be mandatory for all transactions of immovable property of over Rs.10 lakhs, from the earlier threshold of Rs.5 lakhs.

It will also be required for all term deposits of over Rs. 50,000 in not only banks but also in co-operative banks, post offices, nidhis, and non-banking finance companies. Further, PAN will also be mandatory for opening an account (except basic account) in any bank, including cooperative banks.

Cash payments to settle hotel bills and for foreign travel, such as purchase of tickets or buying foreign exchange of over Rs. 50,000, will also require quoting of PAN, the earlier limit was Rs. 25,000.

Opening of demat accounts, buying shares of listed companies which are worth more than ₹1 lakh, or purchasing debentures, RBI bonds, life insurance policies, and mutual funds of over ₹50,000 will also require PAN.

Quoting of PAN has also become compulsory for purchase of gift cards or cash cards of over Rs. 50,000 

PAN will no longer be required for installation of telephone or cell-phone connections.

Reality views by sm –

Tuesday, December 15, 2015

Tags – Black Money Pan Number Must Rs. 2 Lakh


Destination Infinity December 16, 2015  

I wonder how they are going to enforce this rule for cash transactions?

Destination Infinity